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City leans on legislators for day care funding boost

Lead Summary
By
Lori Sorenson

The city of Luverne is committed to developing a day care center in the former Total Card Inc. building on Roundwind Road, just off Blue Mound Avenue.
The city purchased the 30,000-square-foot facility in March for $515,000 for child care and will own and maintain the building to be leased to a child care operation.
Now city leaders are seeking financial support in the forms of grants and legislative action.
Rep. Joe Schomacker, Luverne, jacketed a bill relating to capital investment, appropriating money for a child care center in the city of Luverne, authorizing the sale and issuance of state bonds.
H.F. No. 4417 was read at the House Capital Investment Committee hearing on March 31 and the Early Childhood Finance & Policy Committee on April 5.
The draft bill requests $3,477,946 in state funds for acquisition, renovation, furnishing and equipping a facility in which to provide child care services for Luverne and Rock County.
Mayor Pat Baustian and EDA director Holly Sammons testified at both hearings with the following key points:
•Child care is essential to economic development and a critical part of the social infrastructure of a healthy community.
• Employers are having difficulty attracting and retaining staff due to lack of day care.
• In-home day care providers in Rock County are declining rapidly — from 56 providers (662 slots) in 2016 to 37 (572 slots) in 2019 to the current 28 providers (336 slots) in 2022.
•Young families are choosing to live in Brandon and Sioux Falls for more child care options.
Baustian and Sammons said local leaders are committed to facilitating a local child care center that will serve the needs of Luverne and Rock County.
They pointed to the following facts:
•The private sector alone is unable to acquire or build a child care center based on costs, local rates and wages
•The city of Luverne acquired a 30,000-square-foot facility that is well-suited to be repurposed as a child care center.
•Local resources alone cannot support the significant investment needed for one-time capital investment for renovation.
•Luverne is requesting $3,477,946 in state funds for acquisition, renovation, furnishing and equipping a facility in which to provide child care services for Luverne and Rock County.
•The city is committed to supporting the ongoing operations once the center is established to ensure the sustainability and success of the center.
•The city will sign a management contract with a non-profit and lease the building for $1 per year.
•A non-profit will acquire a child care license and carry out daily operations to offer child care services.
•The city and the non-profit will partner with local businesses and organizations to help support the center to address a critical need for child care.
A local non-profit board is working on plans to remodel the building and operate a child care center.
While no specific plans have been approved, two concepts have been developed showing how the open-floor building can accommodate up to 186 children ages 0 to school age and the support staff.
Specific rooms would be developed for infants, preschoolers, toddlers and school-aged children. An indoor gymnasium would also be designed in the facility.
The existing building already has an enclosed vestibule, offices, a kitchen area, a conference room, a bathroom and a garage.
More bathrooms would be added along with outdoor play areas developed on the large green space on the building’s south side.
At Monday’s meeting, the LEDA members discussed the fact that legislative support — if approved — wouldn’t materialize until March of 2023, so local leaders will continue seeking other funding sources.
 
Project timeline
Summer 2022: Engineering plans and specs
Fall 2022: Advertise project.
Winter 2022: Begin construction.
Spring 2023: Substantial completion.
Spring – Summer 2023: Open child care center.

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